Imagine you are a team of outside investors who have been approached by Matt Grant to invest the $100,000 in financing he seeks for developing eight additional regional publications over the next five years, as explained in his Executive Summary.
Resource: Case 1 about Matt Grant on pp. 474–481 in Entrepreneurship: Successfully Launching New Ventures
Write a 1,400- to 1,750- word paper discussing the following:
Evaluate Matt’s business model. What assumptions has Matt made that appear to be valid? Which assumptions might not be valid?
What changes in the external and competitive environments could affect Matt’s business model? How likely is it that those changes might occur, and why?
What risks and rewards might Matt experience if he moved forward with his business plan?
Evaluate valuate Matt’s decision about forming a corporation. What benefits or challenges would incorporation provide to Matt? Would a sole proprietorship or a partnership be more desirable? Why or why not? Is retaining 55% ownership of the corporation’s stock a positive or a negative aspect of his business model?
Do Matt’s financial expectations support an investment of $100,000 by your team? Why or why not? Explain what factors you took into consideration in making this determination. Would your team invest the $100,000 in financing? Why or why not, considering the return on investment and level of risk?
Format your report consistent with APA guidelines.
